IRS Form 8717 Guide: Retirement Plan User Fee Rules & Steps

Introduction: What is IRS Form 8717?

IRS Form 8717, titled User Fee for Employee Plan Determination Letter Request, is an administrative payment schedule administered by the Internal Revenue Service (IRS) Employee Plans division under the Department of the Treasury. It is authorized under Internal Revenue Code (IRC) Section 7528 and annual IRS Employee Plans Revenue Procedures.

This form is used by employers, plan sponsors, and employee benefit administrators to determine and submit the mandatory federal user fee when applying for an official IRS Determination Letter for a qualified retirement plan. It serves as the payment transmittal document attached to major retirement plan application packages, such as Form 5300, Form 5307, and Form 5310.

Purpose of the Form: Why Form 8717 Exists

A favorable IRS Determination Letter provides formal legal assurance that the written design of an employer’s retirement plan (such as a 401(k), pension, profit-sharing, or ESOP) satisfies all statutory requirements under IRC Section 401(a). This letter protects the tax-deductibility of employer contributions and the tax-deferred status of participant retirement accounts.

Because reviewing complex, custom retirement plan documents requires specialized IRS legal and actuarial resources, Congress enacted IRC Section 7528 requiring the IRS to charge administrative user fees. Form 8717 exists to categorize the specific type of determination request, calculate the correct statutory user fee, and verify whether the employer qualifies for a special small-business fee waiver.

Who Needs to File This Form?

Form 8717 is submitted by plan sponsors and their third-party administrators (TPAs), ERISA attorneys, or actuarial consultants whenever they apply for an IRS ruling on a retirement plan using any of the following application forms:

• Form 5300: Application for Determination for Employee Benefit Plan (for custom, individually designed defined contribution or defined benefit plans).
• Form 5307: Application for Determination for Adopters of Modified Nonstandardized Pre-Approved Plans.
• Form 5310: Application for Determination for Terminating Plan (filed upon the complete termination of a retirement plan).
• Form 5316: Application for Group or Pooled Trust Ruling.
• Form 5300 + Form 5309: When requesting a determination letter for an Employee Stock Ownership Plan (ESOP).

The Small Employer User Fee Exemption (IRC § 7528(b)(2))

To encourage small business owners to establish retirement plans for their workers, federal law provides a 100% user fee exemption for qualifying small employers. An employer pays $0 in user fees on Form 8717 if it meets all three of the following statutory tests:

1. 100 or Fewer Employees: The employer employed 100 or fewer employees who received at least $5,000 in compensation for the preceding calendar year.
2. Non-Highly Compensated Participant: At least one participating employee in the retirement plan is a non-highly compensated employee (NHCE).
3. 5-Year Eligibility Window: The determination letter request is made within the first 5 plan years of the plan’s existence (or within the 5-year period beginning with the plan year).

If you meet these three criteria, you check the exemption box in Part II of Form 8717 and submit your application with zero user fee payment.

Who Is Exempt / Not Required to File?

An employer does not need to complete or submit Form 8717 in the following situations:

• Unmodified Pre-Approved Plans: Employers who adopt a standard, pre-approved prototype or volume-submitter 401(k) plan without custom modifications (these employers rely directly on the plan provider’s IRS Opinion Letter and do not apply for an individual determination letter).
• SEP and SIMPLE IRA Plans: Small businesses establishing model SEP IRAs (Form 5305-SEP) or SIMPLE IRAs (Form 5304/5305-SIMPLE) that do not use determination applications.
• Prototype Plan Sponsoring Organizations: Financial institutions seeking opinion letters for prototype IRA, SEP, or SIMPLE plans use Form 8717-A, not Form 8717.

When to File: Deadlines and Frequency

Form 8717 is an event-based application schedule. It is filed simultaneously with the underlying determination letter application (Form 5300, 5307, 5310, or 5316).

There is no standalone annual deadline; it is submitted whenever the plan sponsor initiates a plan qualification review, executes major plan restructurings during an authorized IRS determination cycle, or terminates a qualified plan.

Where and How to File Form 8717

Under modern IRS Employee Plans procedures, determination letter applications and user fee payments are processed digitally:

• Electronic Submission via Pay.gov: Form 8717 data and fee payments are submitted electronically through the federal Pay.gov system as an integrated part of the electronic Form 5300, 5307, or 5310 package.
• Electronic Payment Methods: User fees are paid directly on Pay.gov using an Automated Clearing House (ACH) direct debit from a corporate bank account or via a major credit/debit card.
• Paper Filings (if authorized): In limited cases where paper submissions are permitted by IRS guidance, Form 8717 is placed on top of the application package and mailed directly to the IRS address as per instructions for Employee Plans Determinations in Covington, Kentucky.

Step-by-Step Instructions to Fill Out Form 8717

Form 8717 is a one-page document organized into sponsor identification, fee schedules, and exemption certifications. Complete each part using the guide below:

Part / Section	Field Description	Instructions
Header Details	Sponsor & Plan Identification	Enter the plan sponsor’s legal name, Employer Identification Number (EIN), 3-digit plan number (e.g., 001), and the formal legal name of the retirement plan.
Part I	User Fee Selection	Check the single box that corresponds to your specific determination request (e.g., Form 5300 individually designed plan, Form 5307 modified pre-approved plan, Form 5310 terminating plan, or multiple employer plan).
Part II	Small Employer Exemption Certification	Check the certification box if the employer meets the 100-employee, NHCE participation, and 5-year statutory criteria to claim a $0 user fee under IRC § 7528(b)(2).
Fee Total Line	Total User Fee Amount	Enter the total fee required based on current IRS Revenue Procedure schedules, or enter $0 if qualifying under Part II.

Common IRS User Fee Categories

The IRS publishes updated fee schedules annually in the first Revenue Procedure of each calendar year (e.g., Rev. Proc. 2026-4). Typical fee categories on Form 8717 include:

• Form 5300 (Individually Designed Plans): Comprehensive review of custom pension, 401(k), and profit-sharing plans.
• Form 5307 (Modified Pre-Approved Plans): Streamlined review for standardized plans with minor custom language (features a lower user fee).
• Form 5310 (Plan Terminations): Final clearance review for defined contribution and defined benefit plans upon full dissolution.
• Multiple Employer Plans (MEPs): Higher tiered fees depending on the number of participating employers in the plan.

Required Documents and Information Needed Before Filling

Before completing Form 8717, the plan sponsor or ERISA practitioner must assemble the following records:

• Completed Determination Application: A finalized draft of Form 5300, Form 5307, Form 5310, or Form 5316.
• Employee Census & Payroll Records: Prior-year payroll data proving the business employed 100 or fewer workers earning $5,000+ if claiming the small employer waiver.
• Plan Effective Date Records: Documentation verifying the original effective date of the plan to confirm it is within the 5-year exemption window.
• Payment Details: Bank routing and account numbers or a credit card ready for electronic payment on Pay.gov.

Common Mistakes to Avoid

• Selecting the Wrong Fee Category: Checking the lower Form 5307 fee box when submitting an individually designed Form 5300 application. The IRS will suspend processing until the fee difference is paid.
• Claiming the Small Employer Waiver Without NHCEs: Claiming the $0 fee exemption when all plan participants are Highly Compensated Employees (owners/officers). The law strictly requires at least one non-highly compensated participant.
• Using Outdated Fee Amounts: Relying on prior-year fee schedules. The IRS adjusts user fees periodically; always verify current rates in the latest annual Employee Plans Revenue Procedure.
• Submitting Disconnected Payments: Attempting to mail a physical paper check separately from an electronic Pay.gov submission. All payments must be processed directly within the electronic application workflow.
• Confusing Form 8717 with Form 8717-A: Using Form 8717 for prototype volume-submitter IRA or SEP applications instead of Form 8717-A.

Consequences of Non-Filing or Inadequate Fees

Submitting a determination letter application without Form 8717 or with an insufficient user fee carries immediate administrative consequences:

• Immediate Application Rejection: The IRS Employee Plans intake unit will reject and return the entire application package without conducting a substantive review.
• Loss of Filing Position: The plan loses its place in the review queue, which can cause the sponsor to miss statutory determination cycles or delay corporate transactions.
• Delay in Favorable Letter: Favorable determination letters required for mergers, acquisitions, or bank loan covenants will be delayed by several months.

Related Forms or Schedules

• Form 5300: Application for Determination for Employee Benefit Plan (the master custom plan application).
• Form 5307: Application for Determination for Adopters of Modified Nonstandardized Pre-Approved Plans.
• Form 5310: Application for Determination for Terminating Plan.
• Form 5316: Application for Group or Pooled Trust Ruling.
• Form 5309: Application for Determination of Employee Stock Ownership Plan.
• Form 8717-A: User Fee for Employee Plan Opinion or Advisory Letter Request (used for prototype IRA/SEP/SIMPLE documents).

Frequently Asked Questions

1. Is the Form 8717 user fee tax-deductible for the employer?

Yes. For a business sponsor, the IRS user fee paid on Form 8717 is deductible as an ordinary and necessary business administrative expense under IRC Section 162. In many cases, the user fee can also be paid directly from plan assets if permitted by the plan document.

2. What happens if our determination letter application is rejected by the IRS?

Under IRS Revenue Procedures, user fees are generally non-refundable once the IRS begins substantive technical review of the application. However, if the application is rejected immediately during initial intake due to procedural defects, the user fee is typically refunded or credited.

3. Can a 401(k) plan qualify for the small employer fee waiver upon termination?

Yes. If a small employer with 100 or fewer employees terminates its plan within its first 5 plan years and meets the NHCE requirement, it can claim the $0 fee exemption on Form 8717 when filing Form 5310.

4. Does each employer in a Multiple Employer Plan (MEP) have to pay a separate user fee?

No. A single Form 8717 is submitted for the entire MEP application, but the total user fee is calculated on a tiered scale based on the total number of participating employers.

5. Can I pay the Form 8717 user fee with a physical check?

Because determination letter applications are now submitted electronically through Pay.gov, user fees are paid electronically via ACH bank debit or credit card. Physical checks are only accepted in rare cases where the IRS has granted an exception for a paper submission.

6. What is the difference between Form 8717 and Form 8717-A?

Form 8717 is used by individual employers and plan sponsors applying for determination letters for their specific retirement plans (Forms 5300, 5307, 5310). Form 8717-A is used by financial institutions and mass submitters applying for opinion or advisory letters for prototype retirement plans (Forms 5306, 5306-A).

Conclusion: Key Takeaways

IRS Form 8717 is the essential payment and compliance schedule that accompanies retirement plan determination letter requests. By categorizing your application, calculating statutory user fees under IRC Section 7528, and verifying small employer exemptions, it ensures that your plan review is processed smoothly by the IRS.

To avoid administrative delays, always confirm current fee amounts in the latest IRS Employee Plans Revenue Procedure, verify eligibility for the small employer $0 fee waiver, and submit your form and payment electronically through Pay.gov alongside your completed application package.